The cryptocurrency market is experiencing a significant surge today, with Bitcoin's price climbing above $106,000, up from its low of $99,400 this week, and the total market capitalization of all cryptocurrencies rising to $3.67 trillion.

Almost all of the top 100 cryptocurrencies by market capitalization were in the green, led by Bitcoin (Bitcoin 3.88%), which rose 4.5% in the last 24 hours, recouping almost all of its losses from the previous seven days. Ethereum (Ethereum 5.52%) hovered above $3,600, up 6.5%, while XRP (XRP 11.92%), Solana (Solana 6%), Cardano (Ada 6.34%), and Dogecoin (Dogecoin 4.75%) also performed well. US stocks extended their recovery from the weekend's decline, with gains ranging from 5% to 9% at the time of writing.

The cryptocurrency fear and greed index rose by 7 points in the past 24 hours to 29, recovering from "extreme fear" to the more moderate "fear" zone, which can be interpreted as an early sign that traders may be gradually shedding the risk-averse mood that prevailed during past trading sessions.

 

Cryptocurrency Markets Rise on Trump's Tariff Dividend Proposal

Cryptocurrency markets surged after former President Donald Trump announced a proposed $2,000 tariff dividend for most American adults (excluding high-income earners).

In a post on Truth Social on November 9, Trump claimed that the United States generates trillions of dollars in tariff revenue and suggested that this money could be used to reduce the country's $37 trillion national debt and fund direct payments to citizens.

While the announcement generated excitement in the cryptocurrency market, it's important to note that the proposal is still in its early stages, and no formal legislation has yet been introduced.

This news triggered a broad rally in the cryptocurrency market after a sharp weekly decline that saw the total market capitalization drop by approximately 9.4% to $3.45 trillion before rebounding.

Traders appear to be pricing in the potential for increased consumer spending and stronger market inflows in the coming weeks if the proposed dividend becomes a reality.

 

Senate Reaches Deal to End Government Shutdown

Another driver behind today’s cryptocurrency rally is progress toward ending the longest government shutdown in U.S. history.

On November 9, senators introduced a funding bill that, if passed in the coming days, would restart federal operations that have been halted since October 1.

The shutdown has weighed on investor sentiment, stalling progress on the launch of several cryptocurrency exchange-traded funds (ETFs) and delaying key economic data needed for the Federal Reserve to decide whether to cut interest rates further this year.

While the bill is not yet finalized, this development represents the first real progress after weeks of uncertainty.

 

Short Liquidation Fuels Bullish Trend

Today’s cryptocurrency market rally was amplified by a massive wave of short liquidation that forced bearish traders to exit their positions.

In the last 24 hours alone, over $262 million in short positions were wiped out, representing the majority of the total liquidation.

Meanwhile, derivatives traders appeared to have strengthened their bullish positions. Open interest in Bitcoin rose 4.65% in the last 24 hours to $33.5 billion, driven almost entirely by the surge in perpetual contracts.

At the same time, the long-to-short ratio on Binance indicated that sentiment among large traders had shifted sharply in favor of the bulls.